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Group buying, also known as collective buying, offers products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase.
Group buying is platform where buyers come together to drive discounts
With time, increasing internet and mobile penetration across the world have been fueling the rise of the online group buying industry
Mydala took the lead in India and became the first player to introduce the concept of Group buying in India (inception in Nov 2009).
Last few years has seen a strong growth in number of players in Group buying.
Groupon currently the largest group buying company in US has seen a multi-fold growth in terms of sales and company valuation. It became a billion dollar company in a very short time. We at Mydala aim to create a similar success story in India.
Key success factors in Group Buying include
•Negotiating great deals with merchants
•Building and maintaining a loyal customer base
•Follow a hyper-local approach in specific markets
Group buying in India The industry is showing good growth in India as Indians tend
to look out for bargains and are very group-oriented. And merchants happily extend discounts to these consumers as it is the least expensive - result oriented marketing that they can do. So this model turns out be a great proposition for consumers as well as merchants.
Also, the number of internet users in India has reached 110 million by mid 2011 with user penetration of 8.9%, reflecting significant market opportunity and growth potential for us.
While most existing group buying players either stick to a one particular model - part payment upfront or full payment upfront, Mydala gives full flexibility to their merchants to choose whichever model they are comfortable with.
Opportunity for group buying is India is large and evolving rapidly; strong players with a wide and deep presence can significantly leverage this opportunity and exploit the viral growth
Products
• Thin margins• Small discounts offered• Less attractive• High touch and feel
needed• Scalability relatively low
• Thin margins• Small discounts offered• Less attractive• High touch and feel
needed• Scalability relatively low
Services
• Better margins (Fixed and variable cost is low)• Deeper discounts• Very attractive• Rapidly scalable
models
• Better margins (Fixed and variable cost is low)• Deeper discounts• Very attractive• Rapidly scalable
models
Stakeholders
Merchant Buyer
Local business retailers face several challengesUnused inventory“Window shopping” attitude and lack of committed
customersIncreased competition including international brandsHigh cost of advertising, building a brand and acquiring
target customer base; inability to track return on marketing spends
No choice of advertising other than traditional mediums; no access to mobile and internet space
Benefits of Group BuyingVery low incremental cost of marketing through group
buying platform in comparison to other mediumsExtensive reach through Internet and Mobile spaceTransparent cost per acquisition model with upfront cash
payment by consumer
Traits of an Indian Buyer: Always skeptical; Lack of transparent deals in Indian commerce.
“Conditions Apply” everywhere. Price conscious, upwardly mobile, bargain obsessed segment Character of consumption is changing from necessity spend to
choice based spending Buyer is always on lookout for best deal
Benefits of Group Buying Unbeatable discounts from 40%-95%, with no hidden conditions Online/Offline payment for offline experience Service verticals being targeted are not in current e-commerce
business Instant gratification, buyer gets the voucher the moment they
make payment
Group buying provides clear and strong value proposition to both merchants and buyers
Events
Shopping
Restaurants
Recreation
Services
Health & Beauty
Online Virals
Online Ads
Alliances
Offline
mydala.com confirms transaction by sending the voucher details by SMS
and e-mail to the buyer; Status is also updated online in buyer profile @
mydala.com
Merchants Buyers
mydala retains its marketing fee and
passes on the balance deal value to the merchant –
through both CPL & CPA models
►The company offers deep discounts (40-95%) on deals to customers through its internet and mobile based platform
►The deal goes live after a minimum required customers are reached within a specified time frame
►The company offers deep discounts (40-95%) on deals to customers through its internet and mobile based platform
►The deal goes live after a minimum required customers are reached within a specified time frame
Comprehensive list of verticals that we target Health & Beauty – Salon,
Parlours, Spas, Gyms
Events – Cricket match, concerts, comedy show
Restaurants & Pubs (Includes fast food, ice cream parlours, cake shops, cafes, etc)
Services – Car Servcies Dance classes, Laundry services, Tattoo services, etc
Shopping – Clothes, Accessories, etc.
Recreation – Go Karting, Rafting, Adventure activities, Bowling, Gaming, etc
Our Marketing Strategy
Facebook fan page currently 50000+ strong is growing at an average of 400 fans a day
Questions on daily deals and upcoming cities. Twitter- Strong following of close to 10000 twitter fans Huge presence on Indian Social Networks such Burrp, In.com, ibibo, big
adda Email and SMS marketing – 30 Lakh + users everyday
Viral Offline
Online Alliances
High ranked and keyword driven SEO & SEM Several promotional contests to keep user
activity on an upward curve Banner ads – affiliate network Google SEM Yahoo ads Facebook and Orkut ads As a result of which our website traffic per day
is more than 3.5 Lakh + unique visitors per day
Local Radio advertising Participation in college fests with promotional
activities Outbound calling to existing customers and
targeted client base Featured in leading dailies, magazines and
television channels
Partnerships with several leading online/offline players that increase reach
Tie up with brijj.com, imint, burrp.com and doing targeted local promotions
Tie up with Indiatimes, mginger & 2ERGO to expand mobile reach
Tie up with corporate focused discount platforms
In discussions with leading Indian leading mobile operators and rediff.com
Partnership And Alliances
Partnerships through multiple verticals provides mydala increased traffic and visibility
Website Terms and Condition
www.brijj.com Deal for different cities Emails sent to their registered users with deals Mails are sent at least twice a month with 5-6 deals in one mail.
www.desidime.com Deal for different cities Deal showcased on their portal with aggressive promotions through digital marketing. Users are redirected to mydala website to buy the deal.
www.zomato.com A generic banner is displayed in their website, in the homepage When there is a restaurant deal running for Mumbai and Delhi in mydala, the menu for these are provided by
zomato as a hyperlink
www.siliconindia.com A Daily Deal section runs on their website where they showcase mydala deals Special mydala Deals newsletters are sent to registered users
2ERGO Send out special deal SMS through all their network partners. Partnership with Airtel ,Vodafone, Loop mobile, etc…
Zipcash Deals are showcased on their WAP network and users can purchase via their mobile through their zipcash accounts.
HT Edge A daily supplement with a wrap up of the entire city covering all topics . Deals are printed on the Entertainment page of the newspaper daily.
Dainik JagaranCityplus
A hyper local newspaper with an average circulation of 3500 copies in each area. Currently our partnership is in Delhi, Hyderabad and Bangalore. A very good is chosen every week in each local are and a full/half page Ad is printed. This deal along with other deals are also showcased on www.cityplusdeals.com , an online deal portal powered by
mydala.
Face book Promotion
We promote you on our interactive fan Page which leads to huge visibility for your business We promote you on our interactive fan Page which leads to huge visibility for your business
Twitter Promotion
We promote you on interactive fan Page which leads to huge visibility for your business We promote you on interactive fan Page which leads to huge visibility for your business
Foodiebay & Delhievent
City specific tie ups, eg:
Foodiebay: a leading restaurant review websiteDelhievents: a leading events site showcases mydala deals
fullondeals
Mobile partner sends out lacs of deal sms to area specific customers
Customers gets redirected to the deal on mydala.com
brijj.com
brijj.com, naukri’s corporate social network with 65 lac users sends mydaladeals to lacs of their users based on merchant location